Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Fonterra spends $42 mln on new Chinese dairy farm

Fonterra spends $42 mln on new Chinese dairy farm

by Paul McBeth

Oct. 20 (BusinessDesk) – Fonterra Cooperative Group will spend $42 million on a new dairy farm in China as it looks to build its presence in the world’s most populous nation.

The world’s biggest dairy exporter and the Yutian County Government formally agreed to develop a new farm in the Hebei province, about 100 kms away from Fonterra’s pilot farm in Tangshan.

Fonterra has entered into a long term lease to use the land, much the way that China-resident New Zealand business leader David Mahon suggested this week could work in this country to assuage fears about foreign ownership of local farmland.

The company’s second Chinese farm is expected to begin milking in November next year, and will house 3,000 cows imported from New Zealand while employing about 100 locals.

“China is a very important market for Fonterra and we’re committed to developing and investing in the local dairy industry over the long term,” chief executive Andrew Ferrier said in a statement.

“Today’s agreement further strengthens Fonterra’s capacity to deliver a secure and sustainable supply of fresh dairy products for Chinese customers and consumers.”

Fonterra stepped back from its investment in China after an earlier Chinese partner was caught up in melamine scandal in 2008 that left several infants dead after San-Lu’s farmers added melamine to the milk to lift its protein.

The farm is expected to produce about as much milk as the Tangshan pilot, which has doubled its muster to 6,000 cows and is producing about 25 million litres for local consumption.

Milk from the new farm will be audited under Fonterra’s standards of excellence.

(BusinessDesk) 16:29:10

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Must Sell 20 Petrol Stations: Z Cleared To Buy Caltex Assets

Z Energy is allowed to buy the Caltex and Challenge! petrol station chains but must sell 19 of its retail sites and one truck-stop, the Commerce Commission has ruled in a split decision that acknowledges possible retail price coordination between fuel retailers occurs in some regions. More>>

ALSO:

Huntly: Genesis Extends Life Of Coal-Fuelled Power Station To 2022

Genesis Energy will keep its two coal and gas-fired units at Huntly Power Station operating until 2022, having previously said they'd be closed by 2018, after wringing a high price from other electricity generators who wanted to keep them as back-up. More>>

ALSO:

Dammed If You Do: Ruataniwha Irrigation Scheme Hits Farmer Uptake Targets

Enough Hawke's Bay farmers have signed up for water from the proposed Ruataniwha Water Storage Scheme for it to go ahead as long as a cornerstone institutional capital investor can be found to back it, its regional council promoter announced. More>>

ALSO:

Reserve Bank: OCR Stays At 2.25%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2.25 percent, in a decision traders had said could go either way, while predicting inflation will pick up as the slump in oil prices washes out of the data and capacity pressures start to build in the economy. More>>

ALSO:

Export Values Down: NZ Posts Biggest Annual Trade Deficit In 7 Years

New Zealand has recorded its biggest annual trade deficit since April 2009, reflecting weaker prices of agricultural commodities such as dairy products, beef and lamb, and increased imports of vehicles and machinery. More>>

ALSO:

Currency Events: NZ's New $5 Note Wins International Banknote Award

New Zealand’s new Brighter Money $5 note has been named Banknote of the Year in a prestigious international competition. The $5 note was awarded the IBNS Banknote of the Year title at the International Bank Note Society’s annual meeting. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news